Directions:
1. Record the transactions for January.
Transactions for January:
Jan. 3. Record sales for the week. To makethings easier, we are going to only record cash sales weekly,though in a real business sales would be recorded more often.Internet sales are done for cash through PayPal. PayPal subtracts afee from the amount that is received depending how the client paidPayPalΓ’ΒΒs. In store sales are paid with cash. Remember a 6% salestax is charged on all instate sales.
Out-of-State InternetSales 150units $1,380
Instate Internetsales 10units $ 100
In-StoreSales 55units $ 600
PayPalfee $28
Jan. 3 Issued check 562 for $1,200 to payrent for January.
Jan. 3 Issued check 563 to USPS for $365 forshipping for the above sales.
Jan. 3 Sold old computer(Office Equipment) costing $2,000 andhaving $800 of accumulated depreciation attached to it for $400 incash.
Jan. 5 Received order of 5,000 DVDs fromKLD Video. Invoice amount was for $18,367.35 which includedshipping and handling. Terms of the order is 2/10, n/30. Rileypolicy is to take advantage of all discounts offered and recordsall purchases at the net amount, less the discount. If Riley failsto pay within the discounted period, the extra amount paid ischarged to Discounts Lost and expensed as a finance charge.
Jan. 5 Issue check 564 to Custom DVD for theamount due on account.
Jan. 5 Received a $320 bill (Invoice number 312)from Morgan County Journal for advertising in this weekΓ’ΒΒsnewspaper.
Jan. 6 Electronically transferred $1,250 to Google for a varietyof internet advertising campaigns. (Confirmation # 1234G234)
Jan 7. Received $120 from Jason Cridalfor amount owed on account.
Jan 7. Jay Finn, owner of FinnΓ’ΒΒs Variety Shopstopped by the store to pick up more videos to be sold at hisstore. He purchased 250 DVDs on account for $1,500. Issued himinvoice number 3321. Since Finn is buying the product to resale, hedoes not have to pay sales tax
Jan. 8 Purchased $650 of office supplies fromDanΓ’ΒΒs Office Supply Company on account.
Jan 8 Issued the following checks topay amounts owed on account.
565 S & SShippingSupplies $1,325
566 WholesaleVideo $3,800
Jan 9 Received a check from GlenBeckendale for $80 and H & C Groceries for $980 for payments onaccount.
Jan. 9 Purchased shipping supplies costing $640 from S & SShipping Supplies on Account.
Jan. 10 Record sales for the week ending January10.
Out-of-State InternetSales 2,800units $22,800
Instate Internetsales 230units $ 2,100
In-StoreSales 559units $ 5,800
PayPalfee $498
Jan. 10 Issued check 567 to USPS for $1,465 forshipping for the above sales.
Jan. 10 Electronically transferred the amount due tothe federal government for withholdings and FICA for December.
Jan. 10 Electronically transferred the amount due tothe state for withholdings and sales taxes from December.
Jan. 10 Electronically transferred the amount duefor the fourth quarter unemployment to the federal government.
Jan. 10 Electronically transferred the amount duefor the fourth quarter unemployment to the state.
Jan. 12 Received payment on account from Fury Video,$1,500.
Jan. 13 Delivered 500 videos to CK Video and delivered theinvoice for $3,800. CK Video purchases the videos for resale. Thus,there is no sales tax.
Jan. 13 Received and recorded bill from City Energyfor utilities for $265.
Jan. 13 Received and recorded bill from Topica Bellfor telephone service for $212.
Jan. 14 Issued the following checks for bills:
568 KLDVideo $18,000
569 Morgan CountyJournal $ 320
Jan. 15 Processed payroll for the first half of themonth. Details follow:
OfficersΓ’ΒΒSalaries $10,000
WageExpense $ 4,250
FederalWithholdings 2,975
FICAWithholdings 1,083
StateWithholdings 570
Jan. 15 Processed employer payroll taxes for the first half ofthe month. Details are below:
FICA $1,083
Federal Unemployment 114
State Unemployment 540
Jan. 15 Issued check 570 for net amount of payroll.Amount is paid to a payroll account where checks are written forpayroll.
Jan. 17 Record sales for the week ending January17.
Out-of-State InternetSales 2,600units $20,800
Instate Internetsales 180units $ 1,900
In-StoreSales 400units $ 3,800
PayPalfee $448
Jan. 17 Issued check 571 to USPS for $1,265 forshipping for the above sales.
Jan. 19 Received $800 for payment on HelmΓ’ΒΒs Depotaccount and $300 for payment on Larry FlintwoodΓ’ΒΒs account.
Jan. 19 Found out that Sterofonics declaredbankruptcy and that you will most likely collect nothing and foundout that Mary VanStruckle left the state. Decide to write off bothaccounts.
Jan. 20 Issued check 572 for new computer (Office Equipment)$2,600.
Jan. 21 Issued 2,500 more shares of the $1 par valuestock for future store expansion at $25 per share.
Jan. 21 Took the $62,500 of cash from sale of stockand invested it into a variety of marketable equity securities. Thecash was electronically transferred.
Jan. 22 Cut check 573 for $220 to Memix ComputerRepairs for repairs done to computer.
Jan. 22 Received a bill from LarryΓ’ΒΒs Janitorial Services for themonth of January for $400.
Jan. 23 Issued the following checks for bills:
574 CityEnergy $265
575 TopicaBell 212
Jan. 24 Record sales for the week ending January24.
Out-of-State InternetSales 3,200units $27,400
Instate Internetsales 120units $ 1,200
In-StoreSales 320units $ 3,300
PayPalfee $558
Jan. 24 Issued check 576 to USPS for $1,455 forshipping for the above sales.
Jan. 26 Received a check from AlbertFinney for payment on his account for $215.
Jan. 27 Issued check 577 to S & SShipping Supplies for $640 to pay off the account.
Jan. 29 Issued check 578for $400 to R.J. Holmes, CPA for accounting services for the monthof January.
Jan. 31 $500 waselectronically transferred out of the checking account to payinterest for the month of January on the Note Payable.
Jan. 31 Record sales for the week ending January24.
Out-of-State InternetSales 2,700units $28,000
Instate Internetsales 230units $ 2,400
In-StoreSales 380units $ 4,600
PayPalfee $538
Jan. 31 Issued check 579 to USPS for $1,223 forshipping for the above sales.
Jan. 31 Processed payroll for the second half of themonth. Details follow:
OfficersΓ’ΒΒSalaries $10,000
WageExpense $ 4,250
FederalWithholdings 2,975
FICAWithholdings 1,083
StateWithholdings 570
Jan. 31 Processed employer payroll taxes for the first half ofthe month. Details are below:
FICA $1,083
FederalUnemployment 114
StateUnemployment 540
Jan. 31 Issued check 580 for net amount of payroll.Amount is paid to a payroll account where checks are written forpayroll.
Jan. 31 Issued check 581 for $180 to replenish PettyCash. Below are the receipts left in the fund.
OfficeSupplies $50
JanitorialExpense $40
Miscellaneous $90
Monthly Adjusting Entries
1. $200 of insurance has expired during January.
2. $5,300 of shipping supplies remained at the end of January.
3. $520 of office supplies remained at the end of January.
4. Riley estimates that the allowance for doubtful accounts shouldhave a balance of $600 at the end of January.
5. Monthly Depreciation for Store Equipment is $500
6. Monthly Depreciation for Office Equipment is $250